Industrial leasing volume in Singapore down 4.5% to 3,061 in Q3

The single-user factory segment drove the decline.

In a recent report, Savills revealed that Singapore’s factory and warehouse segments faced cautious sentiment and slower leasing activity in Q3, with demand falling across the board in the quarter. While the single-factory segment recorded a decline of 17.5% YoY in Q3, multiple-user factory and warehouse segments posted a marginal decrease of 4.0% and 1.6% YoY respectively.

“Although total leasing volume declined by 4.5% YoY to 3,061 tenancies in Q3/2025, it was almost the same as the quarterly average of 3,065 deals for the last three years (2022 to 2024),” the report said.

Here’s more from Savills:

Although demand showed signs of moderating but with new supply limited, the vacancy rate for single- and multiple-user factory stayed relatively flat at 10.9% and 9.0% respectively in Q3. The warehouse vacancy rate eased by 0.8 percentage point (ppt) QoQ to 10.4% in Q3, underpinned by a healthy net take-up of over 1.1 million sq ft in the West Planning Region. This could be attributed to the major new completion - Maersk’s World Gateway 2, which was fully pre-committed.

The rental market showed a mixed performance in Q3, with warehouses remaining strong. Compared with 0.4% QoQ growth in Q2, JTC’s warehouse rental index rose 0.9% QoQ in Q3.

According to Savills’ basket of private industrial properties, prime warehouse and logistics properties’ monthly rents increased at a faster rate in Q3, rising 4.3% QoQ to S$1.82 per sq ft. Meanwhile, multiple-user factory saw muted rental growth, with JTC’s rental index climbing by 0.4% QoQ in Q3 (compared with 0.9% QoQ in Q2). Savills’ prime multiple-user factory monthly rents slipped by 0.3% QoQ to S$2.25 per sq ft in Q3.